Wednesday, February 25, 2009

2% cut in excise, tax

[The crisis in imperialist-capitalist is inevitable; fresh crisis comes before the system recovers from previous one. Every time, when imperialist-capitalist system recovers from a crisis, it puts the burden over the people—imperialist plunder over the people of Asia-Africa-Latin America and exploitation of people in imperialist-capitalist countries get intensified. In order to overthrow this imperialist-capitalist system, while every communist revolutionary welcomes the crisis, also keeps an eye on the imperialist policies. Crucial is therefore the fighting against the policies which takes away the right of working class or give subsidy to MNCs and comprador bourgeoisies in expense of the unpaid hard labour of working class.

Yesterday government of India has announced a policy aiming for subsidizing MNCs and comprador bourgeoisies, which will lead to revenue loss of Rs 29100 crore (US$ ~6 billion). That means poor Indian people will manage lower calorie and have to work more hours a day, while the margin of profit for MNCs and comprador bourgeoisies will be the same or higher. Let's have a look over the policy.
The news was published in The Statesman on 25 Feb 2009.]
Statesman News Service NEW DELHI, Feb. 24: The government today slashed excise duty and service tax by two per cent each and extended the existing four per cent reduction in excise duty beyond the end of this fiscal, aiming to stimulate the economy.
The finance minister, Mr Pranab Mukherjee, announced the reduction in the general excise duty from 10 per cent to eight per cent and that of the service tax from 12 per cent to 10 per cent. Mr Mukherjee also announced cut in excise duty on bulk cement by two per cent or Rs 60 per ton, whichever is higher.
The finance minister extended the flexibility for states to deviate from fiscal consolidation targets by 0.5 per cent beyond 31 March 2009, to enable them to boost infrastructure and generate more employment.
The Lok Sabha passed the interim Budget incorporating today’s measures by voice vote, amid a walk-out staged by the Opposition BJP and Left members who remained dissatisfied with the finance minister’s reply.
Mr Mukherjee also extended exemption from customs duty given to naphtha imported for power generation beyond this fiscal-end.
The fiscal sops will be effective from midnight tonight.
The measures will lead to revenue loss of Rs 14,000 crore in service tax, Rs 8,500 crore in excise duty and Rs 6,600 crore in customs duty,” the Central Board of Excise and Customs chairman, Mr PC Jha, said. He also said the excise duty cut by two per cent will be effective in the slab of 10 per cent only.
PTI adds: Tata Motors, Ashok Leyland, Ceat, along with Apollo, today said they will cut rates of their products in order to pass on the benefit of two per cent excise duty cut.
Bengal scheme: Meanwhile, prior to the polls the Bengal labour department has announced the launch of a new scheme for self employment of unemployed but skilled youths.

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